Micro Small and Medium Enterprises Haryana Enterprises Policy 2020

Micro Small and Medium Enterprises (MSME) - Fixed Capital Investment INR 50 crore and annual turnover not more than INR 250 crore or amended under MSMED the Act, 2006 time to time by GoI.

Investment Subsidy on SGST

• 75% of Net SGST for first 7 years, 35% for next 3 years in ‘D’ category blocks with up to 150% of FCI.
• 75% of Net SGST for first 7 years, 35% for next 3 years in ‘C’ category blocks with up to 125% of FCI.
• 50% of Net SGST for first 5 years, 25% for next 3 years in ‘B’ category blocks with up of 100% of FCI.

Expansion/Diversification- These benefits shall be also be applicable to units undergoing 50% additional investment in plant and machinery for expansion/ diversification of existing unit with cap of 100% of new fixed capital investment on expanded FCI.

Interest Subsidy

• 5% for Micro and Small Enterprises on term loan or maximum up to Rs. 10.00 lakh per year for 5 years in ‘C’ & ‘D’ Categories Blocks
• 5% for Micro and Small Enterprises on term loan or maximum up to Rs. 10.00 lakh per year for 3 years in ‘B’ Categories Blocks

Employment Generation Subsidy

For capacity building of persons belonging to Haryana (skilled/semi-skilled) [having Haryana Resident Certificate] Subsidy @ Rs 36,000/- per year for SC/ Women and Rs 30,000/- per year for general category for 5 years in 'B’ & 'C' category blocks for direct employment with ESI/PF Number. However, the employment subsidy shall be provided for all the persons employed by the units in D Category Blocks.

Market Development Assistance For Micro and Small enterprises

International fair : For space size up to 9 sq.m., 75% space charges, shipment of exhibits, cost of product literature, display material, stall/stand construction/ fabrication/ designing charges or maximum up to Rs. 6.5 lakh and air fare by economy class up to Rs. 1.5 lakh (maximum 2 person) will be reimbursed for participation in the international fairs / exhibitions for one fair in a year.

Domestic fair : For space size up to 9 sq.m., charges towards space, transportation charges of exhibits, cost of product literature, display material, stall/stand construction/ fabrication/ designing charges or maximum up to Rs. 4 lakh and air fare by economy class up to Rs. 0.50 lakh and boarding charges @ Rs.5000/- per day per person (maximum two persons) will be reimbursed for participation in the domestic fairs / exhibitions for one fair in a year.

Testing Equipment Assistance

In order to ensure ‘Zero Defect’ in the quality of products to make globally competitive, Financial support of 50% as subsidy or maximum of Rs. 10 lakh per year for the purchase of testing equipment shall be provided to Micro and Small Enterprises.

Assistance for Technology Acquisition

50% of cost for adopting/acquiring technology from premier National/International Institutes/Patented Technology from Private Companies, max. of Rs. 25.00 lakh.

Patent Cost

Financial support by reimbursement of 50% of the actual expenses (including filing fees, consultancy fees, search fees, maintenance fees and Publishing fees) with a maximum of Rs. 25 lakhs for domestic patent registration and international patent registration.

Assistance for Environment Compliance

50% financial support or maximum of Rs. 25.00 lakh on capital cost for setting up of Effluent Treatment Plant and for installation of Air Pollution Control Devices for Micro, Small and Medium Enterprises of all sectors (The Units adopting zero effluent will be considered for higher subsidy on case to case basis).

Energy Audit

75% reimbursement or maximum of Rs. 2 lakhs for conducting energy audit. Also 50% subsidy on cost of capital equipment required for undertaking measures to conserve energy, subject to maximum of Rs. 20 lakhsonce in every 5 years.

Water Audit

75% reimbursement of cost of Water audit subject to maximum of Rs. 1 lakh. Also, subsidy up to 50% or maximum of Rs. 20 lakhs on the cost of capital equipment required for Water Conservation/ Harvesting System.

Safety Audit

75% reimbursement of expenses incurred on safety audit subject to maximum of Rs. 1 lakh for conducting safety audit. Also 50% subsidy on cost of capital equipment and capital expenditure required for undertaking safety measures, subject to maximum of Rs. 10 lakhsonce in every 5 years [for compliance of Safety provision under Factory Act, 1948].

Credit Linked Capital Subsidy for Technology Up-gradation

State Credit Linked Interest Subsidy Scheme for Technology Up-gradation of existing enterprises- @5% up to a maximum of INR 10 lakh per year for a period of 3 years to an eligible unit in specified sectors/products (appraisal by HSIIDC).

Stamp Duty Refund

100% refund in 'D' category blocks; 75% in 'C' category blocks and 50% in 'B' category blocks on the land meant for industrial use after commencement of commercial production, within 5 years from the date of purchase of land.

Power Tariff Subsidy

Rs. 2 per unit up to connected load of 40kWat source only for Micro and Small Enterprise in ‘C’ and ‘D’ Category blocks for 5 years from the date of release of electricity connection. The funds shall be provided by the Govt to UHBVN/DHBVN for DBT of subsidy amount.

Credit Rating

Reimbursement of the expenses incurred towards the credit rating to the extent of 75% or maximum of Rs. 2 lakhs for Micro & Small enterprises carried out by SIDBI / Govt. accredited credit rating agency after every 5 years.

Quality Certification

75% reimbursement of the total expenditure incurred for obtaining certification and logistics charges thereof subject to a maximum of Rs. 5 lakhs for obtaining ISO/ HACCP/ BSI/ WHO-GMP/ ZED/TS/ Hallmark certifications/ other country specific certifications for export etc. after every 3 years and would be in addition to the support being provided by Government of India.

MSME State Awards

Outstanding Entrepreneurship State Awards shall be provided to Micro and Small Enterprises of Rs. 5 lakh each separately for growth in production and profit, for innovation & development of new products, quality products and lean manufacturing techniques in the field of Agro and Food processing, Automobiles and auto parts, Textiles, Engineering, Pharmaceuticals, IT & Electronics etc. The unit once selected for award shall not be considered again during next 5 years.

CLU/EDC charges

50% refund of Conversion Charges and EDC in ‘B’, ‘C’ & ‘D’ category blocks.

Electricity Duty Exemption/ Open Access Charges

• 100% exemption for 10 years in ‘D’ category blocks, 7 years in ‘C’ category blocks and 5 years in 'B' category blocks.
• Exemption from open excess charges maximum up to Rs. 1.00 per unit (Wheeling Charges, Transmission Charges, Cross subsidy Surcharge and Additional Surcharge in case of Medium and Large units in Thrust sectors.

Special provisions for Start-Ups / First Generation Entrepreneurs

• Interest subsidy of 8% per annum for a period of 5 years
• Reimbursement of 25% of lease rental subsidy period of 1 year up to Rs. 3 lakh per annum
• Seed Grant up to Rs.3 Lakh per start-up
• 100% Net SGST Reimbursement for 7 years

Entrepreneurship Development Program

The financial support of Rs. 5 lakhs shall be provided to Government Universities/ NIT/ IIT/ Technical Institutes for conducting entrepreneurship development program.

Collateral Free Credit Guarantee Scheme

Reimbursement @ 100% guarantee cover fee charged by the Financial Institution/ baaks from Micro Enterprises for collateral free term loan/working capital under CGTMSE for the period of 05 years.

Price Preference to MSMEs

Haryana Government has formulated a public procurement policy for the MSEs in the state under which the micro and small enterprises (MSEs) will get several benefits such as exemption on payment of tender fee, earnest money deposit and concession on performance security. The purchase preference would be 50% of the total tendered quantity by the Supplies and Disposal Department.

Haryana Gramin Udyogik Vikas Yojna in B, C and D Category Blocks

• Capital Subsidy: 15%, maximum of Rs. 15 lakh & max. of Rs. 20 lakhs for Women/ SC/ST on the investment made on Plant & Machinery and building for setting up of Micro Enterprises outside the municipal limits in rural areas.
• Interest Subsidy: 6% for Micro Enterprises on term loan or maximum up to Rs. 8.00 lakh per year for 5 years
• DG Set Subsidy @ 8000 per KVA, max. upto 50% of the cost of the DG Set purchased from authorized dealer for Micro enterprises.

Note:- The other incentives specified for MSME sector shall also be permissible.

Vendor Development Programme

For promotion of sales, Vendor Development Programmes (Rs.10.00 lakhs) at least 02 per year shall be organized incollaboration with Micro, Small and Medium Enterprises Development Institute, Karnal of GoI.